Wednesday, 8 January 2014

Deloitte 2014 - Mining: Tracking the Trends

6th Annual Report on the Mining Industry from Deloitte - HERE
Exec Summary
Full Report

Can we find good management responding to the right investor concerns?
Talent shortages in the mining industry remain and threaten to widen as the workforce ages. Now, however, those talent gaps are extending into executive suites. A similar gap may exist at the board level. As a result, many companies lack
the skillsets crucial to shepherd them through
the current commodity price downswing.
In response to demands from investors and analysts, mining companies developed massive project pipelines. Investment in marginal projects, however, has led to record asset impairments.
• To turn the tide, miners need more robust project scoping processes, governance systems and risk control mechanisms. They also need to strengthen their capital allocation practices by incorporating multi-variable risk modeling.
• Other solutions include optimizing mine portfolios, rationalizing projects, engaging in phased modular construction and honing the skills necessary to contain costs
To achieve lasting change, it is time for mining companies to innovate more strategically. This may include rethinking energy management, adopting electric technologies, automating core mining processes, using techniques like remote sensing to localize ore deposits and building shared infrastructure to reduce costs

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